Skype founder Janus Friis' new venture Vdio is believed to have pulled a UK launch campaign that was set to position the video streaming service as a competitor to LoveFilm and Netflix.
After initially hoping to launch Vdio as a standalone entity, it appears the company has decided to roll it into sister brand Rdio.
The news comes as rumours circulate that Rdio could be bought by Microsoft, which is believed to be considering an Xbox Video and Xbox Music offering.
Friis' previous company Skype was acquired by Microsoft last year for $8.5bn.
Vdio was due to be launched in the UK via a major marketing campaign prior to a US launch but the plans were changed by the arrival of video giant Netflix in the UK in January.
Rob Gotlieb, the former European marketing director for Muzu.tv, was heading up marketing for Vdio’s launch in the UK but now appears to be focusing his efforts on Rdio’s US operations.
Gotlieb is currently hiring for a director for content marketing for the Americas region, while Rdio is also looking to recruit a director of partner marketing based in San Francisco.
Rdio issued a statement last month accepting the two brands do share resources, but insisted Vdio is still operating as a separate company.
Vdio and Rdio declined to comment on the UK launch plans.
Former Vdio web front-end developer Sebastiaan Spijker, who left the company in March, also declined to comment when contacted.Follow @mattchapmanuk
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